Registering your farm?

[Mike32]

How do you go about registering your farm so that you can write off all the feed and so forth? I have a small farm now and was wondering if it is something i should do. What are your experiences? Is there also help with funding to expand your farm? I did a google search but it just has too many that it gets confusing. Thank you for your help and advice.

 

[Bear Foot Farm]

How do you go about registering your farm so that you can write off all the feed and so forth?

You have to be a WORKING farm, with actual sales.

Contact your States Tax Dept and they can probably tell you how to apply for the Agriculture sales tax exemption

If you're talking about writing it off on INCOME taxes, you don't need to be "registered".
You just have to report your costs and income on a Form 1040 Schedule F

Be sure to have ALL receipts and records of income

Your County FSA agent can tell you about financial programs​

 

[Kudzu]

Go to a Tax attorney or a tax accountant and get their advice. Best money I ever spent.

 

[MuranoFarms]

We're registered as a business....our accountant did all the work. This seems super simple, but it does bear saying: make sure you choose a FARM accountant! lol Our original (personal) accountant had all sorta of ideas on how to do things and it just didn't sound right. We got a referral from a friend who's had his farm business for 10 years. Using his accountant made things super easy! Also, we got a premise ID from the Pa dept of agriculture....not sure if you need one in your state or not.

 

[Oregon Blues]

There's a schedule F for farming expenses on the federal taxes. You don't have to register your farm, just fill out schedule F when you file your taxes. That's how you deduct expenses.

States vary. You might have to register a fictitious business name in your state to get state tax benefits and wholesale prices when you purchase stuff. I suspect that if you google it, you can find a state website that explains what you need to do. The states are usually really good about telling you how to pay them more taxes. Some states expect you to collect sales tax for them.

 

[aoxa]

Quote:

At least you didn't bad mouth the one that didn't know about farming!

I actually am an accountant, and we don't deal with a lot of farming companies. Around tax season we get a few. This is not something you take to H&R block though

 

[TinyChickenLady]

Is that available for backyard farms as well or just working farms?

 

[aoxa]

Quote:
Only working farms. If you make money off your eggs, you can write off a percentage of what your expenses are, but ONLY a percentage.

 

[TinyChickenLady]

Quote:
Only working farms. If you make money off your eggs, you can write off a percentage of what your expenses are, but ONLY a percentage.

Ahhh okay gotchha

I actually just went over all that with my mother, the proud holder of an accounting degree

and we decided it's not my kind of file yet LoL